U.S. brings new charges over Tenet Healthcare fraud scheme

Reuters News
Posted: Sep 27, 2017 4:41 PM

(Reuters) - The U.S. Justice Department has brought new charges over a scheme that it says enabled Tenet Healthcare Corp to fraudulently bill state Medicaid programs for $400 million, according to an indictment made public on Wednesday.

William Moore, the former chief executive of Tenet-operated Atlanta Medical Center Inc, and Edmundo Cota, the ex-head of a clinic operator that provided prenatal care to Hispanic women, were charged in an indictment filed in Atlanta federal court.

They were added as defendants in a case the Justice Department brought in February against John Holland, a former Tenet senior vice president. The trio faces multiple charges including conspiracy and wire fraud, according to the indictment.

The charges came after Dallas-based Tenet and two of its Atlanta-area units in October 2016 reached a deal with the Justice Department and agreed to pay more than $513 million to resolve criminal charges and civil claims in a related case.

Brian McEvoy, a lawyer for Moore at the law firm Polsinelli PC, said in a statement he was "extremely disappointed" with the agency's action.

"Mr. Moore is not guilty and we look forward to presenting this case to a jury at trial," McEvoy said.

A lawyer for Cota, the former chief executive of medical clinic operator Clinica de la Mama, could not be immediately identified. A Justice Department spokesman did not immediately respond to a request for comment.

The case is U.S. v. Holland, U.S. District Court, Northern District of Atlanta, No. 17-CR-234.

(Reporting by Nate Raymond in Boston; Editing by Richard Chang)